Corporate Law MCQs

1.
The following are ineligible for appointment as auditor EXCEPT:

a. A spouse of a director of the company
b. A person who is indebted to the company
c. A partner or employee of a director, officer or employee of a company.
d. A person who has shares in another Company
2. The ____________must state the name of the auditor, be signed, dated and indicate the place
at which it is signed. Where the auditor an individual, the report must be signed by him.
a. Auditor’s report
b. Director’s Report
c. Prospectus
d. Both A& B are correct
3. A person appointed to carry out the winding up of a company is called liquidator.
a. Auditor
b. Director
c. Liquidator
d. Manager
4. The followings all persons are liable to contribute:
a. Present and past members, Directors having unlimited liability, Death of contributory
and insolvency of contributory
b. Present and past members, Directors having limited liability, Death of contributory
and insolvency of contributory
c. Present and past members, Directors having unlimited liability and insolvency of
contributory
d. Present and past members, Directors having unlimited liability and Death of
contributory
5. If a __________becomes insolvent, his assignee in insolvency shall be the contributory. The
assignee shall be liable to contribute out of the assets of the insolvent.
a. Director
b. Present and Past member
c. Share holder
d. Contributory
6. A ______________shall not be liable to make further contribution in respect of any debt or
liability contracted after he ceased to hold office.
a. Present Director
b. Liquidator
c. Share holder
d. Past director
7. A _____________ shall not be liable to make further contribution if he ceased to hold office for
1 year or more before the commencement of winding up.
a. Present Director
b. Liquidator
c. Share holder
d. Past director
8. Dividend is declared and approved in the general meeting, however, interim dividend may be
approved and declared by the _________
a. Directors
b. All share holders
c. Members of meeting
d. All are correct
9. Dividend shall not be __________from the gain arising from sale of immovable property unless
such gain is adjusted against losses on sale of Capital assets
a. Paid
b. Declared
c. Announced
d. Reinvest
10. Dividend once declared becomes an _____________ of the company
a. Obligation
b. Expense
c. Asset
d. Income
11. A profit that exists on paper, resulting from any type of investment. An ___________ gain is a
profitable position that has yet to be cashed in, such as a winning stock position that remains
open
a. Realized
b. Unrealized
c. Advance
d. Outstanding
12. If dividend is not paid within 30 days of its declaration, the Chief Executive of the company shall
be punishable with imprisonment up to a period of 2 years and a fine up to:
a. Rs 1 Million
b. Rs 3 Million
c. Rs. 0.5 Million
d. Rs. 2 Million
1-The part of authorized capital not offered for subscription to the public is known as “___ capital”.
a) Unauthorized b) Unpaid c)Un-issued d) Unsubscribed
2-The ___ must state the amount of capital with which the company is desired to be registered.
a) Memorandum of Association b)Article of association c) Prospectus d) Financial statements

3-___ is the process in which shares are created and issued by company to the people who became
shareholders.
a) Share allotment b)Share Transfer c) Share Transmission d) b& c both
4-Theinitial shareholders are called ___.
a) Transferee b) Subscribers c) Board of directors d) Investors
5-In case the amount is unpaid within 50 days of issuance of prospectus, directors will be liable to pay
amount with a surcharge at the rate of ___for a month.
a)0.5% b)1% c)1.5% d)2%
6-An allotment of shares shall be void if application is not made within __ days from the date of issue of
prospectus.
a)3 days b) 5 days c)7 days d)11 days
7-The amount of unsuccessful applicants shall be refunded within ___days from the decision.
a) 10 days b) 15 days c)30 days d)45 days
8-The Company shall file with a registrar a return on allotment within ___ days from the date of
allotment.
a) 10 days b) 15 days c) 30 days d) 45 days
9- Section 60 states that every share in company having a share capital shall be distinguished by its
distinguished ___
a) Name b) Amount c) Number d)None
10-If company cannot issue duplicate shares; it will notify reasons within ___days to applicant.
a) 10 days b) 20 days c) 30 days d)40 days
11-On winding up of the company, the ___ stock has preference in repayments.
a) Preferred b) common c) Deferred d) a & b both
12-Capital with which company is registered is known as ___ capital.
a)Subscribed b)Issued c)Registered d)Paid up
13-Every company shall replace its physical shares with book form within the period of ___ years.
a) 2 b) 4 c) 6 d)10
14-The amount which is not called on subscribed shares, is called ___ capital.
a)Unpaid up b) Unsubscribed c) Unissued d)Un called up
15-___ is the document in which it is stated that company is going to do what.
a) Memorandum b) Article c) Prospectus d) All
1. What is known as a charter of a Company?
[A] Memorandum of Association
[B] Bye laws
[C] Articles of Association
[D] Prospectus
Answer: Option [A]
2. Minimum paid up capital for a public company
[A] 500000
[B] 400000
[C] 300000
[D] 200000
Answer: Option [A]
3. The name of a company can be changed by__________.
[A] an ordinary resolution
[B] a special resolution
[C] the approval of the union government
[D] a special resolution and with the approval of the central government
Answer: Option [D]
4. The __________defines a companys relations with the outside world.

[A] prospectus
[B] memorandum of association
[C] articles of association .
[D] statement in lieu of prospectus .
Answer: Option [B]
5. The most important document of a company is its__________.
[A] prospectus
[B] annual report.
[C] memorandum of association
[D] articles of association
Answer: Option [C]
6. Mark out the type of alteration that is permitted in the articles of association____.
[A] that may not be in the companys interest .
[B] that is contrary to the provisions of the companies act.
[C] that increases a members liability without his written consent .
[D] that is consistent with the memorandum of association .
Answer: Option [D]
7. Mark out the document that need not be prepared and registered with the registrar of
companies in public limited companies.
[A] statutory declaration
[B] memorandum of association .
[D] directors undertakings to take up and pay for qualification shares
Answer: Option [C]

8. The share capital of a company may be reduced by __________.
[A] an ordinary resolution
[B] a special resolution
[C] a resolution of the board of directors
[D] obtaining permission from the company law board
Answer: Option [B]
9. The ___________ on equity shares is not cumulative.
[A] dividend
[B] profit
[C] loss
[D] reserve
Answer: Option [A]
10. The ___________ constitute the top administrative organ of the company. .
[A] general manager .
[B] shareholders.
[C] board of directors.
[D] advisory panel.
Answer: Option [C]
11. A directors election takes place in a general meeting through a separated Resolution passed
by a _______ majority
[A] single
[B] two-thirds
[C] three-fourths.
[D] five-sixths .
Answer: Option [A]
12. The total managerial remuneration to the directors and the manager in respect of any
financial year must not exceed _________ percent of the net profit.
[A] one
[B] three
[C] eleven
[D] ten
Answer: Option [C]
13. Where a company has three directors, the maximum remuneration payable to all of them is
________% of the annual net profit
[A] 5.
[B] 10.
[C] 20.
[D] 25.
Answer: Option [B]
14. A person cannot act as managing director of more than _______company /companies at a
time
[A] one
[B] two
[C] four
[D] five
Answer: Option [B]
15. The partnership entity may be regarded as ____________.
[A] a legal entity .
[B] an accountable entity .
[C] both a legal and accountable entity .

[D] neither a legal nor an accountable entity
Answer: Option [D]
16. The amount of minimum subscription may be learnt from the ______________.
[A] prospectus
[D] records of general meetings
Answer: Option [A]
17. When can a private company commence business ?
[A] at any time
[B] after applying for registration.
[C] after obtaining the certificate of incorporation.
[D] after obtaining the certificate of commencement of business .
Answer: Option [C]
18. An exception to the doctrine of constructive notice is____________.
[A] the doctrine of ultra vires .
[B] the doctrine of indoor management .
[C] lifting the corporate veil
[D] the doctrine of ultra vires in Articles of Association.
Answer: Option [B]
19. A prospectus is to be issued within _______days of registration.
[A] 30
[B] 60
[C] 90
[D] 180
Answer: Option [C]
20. All monies received with the application of shares are to be deposited_______.
[A] with the controller of capital issues .
[B] in the companys bank account
[C] in a special account opened in a scheduled bank for the purpose
[D] with the registrar of companies
Answer: Option [C]
21. The minimum subscription is to be received within ______days of the offer.
[A] 30
[B] 60
[C] 120
[D] 150
Answer: Option [C]
22. The charter of a company refers to its ________________.
[A] prospectus
[C] articles of association
[D] statement in lieu of a prospectus
Answer: Option [B]
23. An association of 30 persons not registered under the companies Act but carrying on a
business is a/an ___________.
[A] illegal association
[B] partnership
[C] private company

[D] public company.
Answer: Option [A]
24. A company is a juristic person with a perpetual succession _____________
[A] as such it dies.
[B] its life depends on the life of its members.
[C] it is created by a process of law and can be put to an end only by a process of law
[D] none
Answer: Option [C]
25. On a share of Rs. 100 of a company, a shareholder has already paid Rs. 30.His Liability is
now limited to ___________
[A] Rs. 100.
[B] Rs. 30
[C] Rs. 70.
[D] Rs.10
Answer: Option [C]
26. The Reserve Bank of India is an example of a _____________.
[A] registered company.
[B] statutory company.
[C] chartered company.
[D] unlimited company.
Answer: Option [B]
27. The liability of a shareholder in a company limited by shares is ____________.
[A] unlimited
[B] limited by guarantee.
[C] limited to the unpaid value of shares subscribed by him.

[D] none of the above
Answer: Option [C]
28. An act is said to be ultra vires a company when it is beyond the powers ___________.
[A] of the company
[B] of the directors .
[C] of the directors but not the company
[D] conferred on the company by the Articles.
Answer: Option [A]
29. Which of the following companies need not have their own articles of Association?
[A] unlimited companies.
[B] companies limited by guarantee
[C] private companies limited by shares.
[D] public companies limited by shares.
Answer: Option [D]
30. The Articles of a company conflict with the Memorandum _______________.
[A] the Articles shall prevail.
[B] the Memorandum shall prevail
[C] the directors will resolve the conflict.
[D] the court will resolve the conflict.
Answer: Option [A]
31. A shareholder purchased in the open market shares of a company whose prospectus
contained some misstatements. He ____________.
[A] can rescind the contract only but cannot claim damages
[B] can claim damages only but cannot rescind the contract
[C] has no remedy against the company.

[D] has remedy against the directors responsible for the issue of the prospectus
Answer: Option [C]
32. Underwriting means ___________.
[A] selling shares at a discount .
[B] purchasing property at less than market price.
[C] agreeing to purchase shortfall of shares in a company in case of under subscription
[D] offering new shares to outsiders
Answer: Option [C]
33. Share capital of a company means ______________.
[A] equity share capital .
[B] preference share capital
[C] equity and preference share capital .
[D] equity and preference share capital and debentures
Answer: Option [C]
34. The dividend on preference capital is paid _____________
[A] whenever there are profits
[B] only if there are profits.
[C] even if there are no profits.
[D] only when the directors recommend it
Answer: Option [D]
35. Shares can be issued ____________.
[A] at par.
[B] at discount.
[C] at premium.
[D] all of the above.

Answer: Option [D]
36. The debenture holders of a company are companys__________.
[A] owners
[B] creditors
[C] customers
[D] all of these.
Answer: Option [B]
37. A share certificate is required to be signed by_____________
[A] company secretary.
[B] two directors.
[C] two directors and company secretary
[D] all directors and company secretary
Answer: Option [C]
38. A secretary should have sound knowledge of_______________.
[A] company law.
[B] tax laws.
[C] labour laws.
[D] all of these.
Answer: Option [A]
39. Transmission of shares takes place in the following case_____________.
[A] sale of shares.
[B] theft of shares.
[C] operation of any law.
[D] all of these.
Answer: Option [C]

40. The dividend on preference capital is paid___________.
[A] whenever there are profits
[B] only if there are profits
[C] even if there are no profits.
[D] only when the directors recommend it
Answer: Option [D]
41. A private company ________issue deferred shares with disproportionatevoting rights
[A] can ony
[B] can
[C] cannot
[D] can with the prior approval of the government
Answer: Option [A]
42. When is a company said to have been registered?
[A] when it files the memorandum of association with the registrar if companies
[B] when it gets the certificate of incorporation
[C] when it gets the certificate of commencement of business
[D] when it actually starts its business
Answer: Option [A]
43. how many types of preference shares
[A] 8
[B] 7
[C] 6
[D] 5
Answer: Option [A]

44. The debenture holders of a company are companys____________.
[A] owners
[B] creditors
[C] customers
[D] all of these
Answer: Option [B]
45. A share certificate is required to be signed by__________.
[A] company secretary
[B] two directors
[C] two directors and company secretary
[D] all directors and company secretary.
Answer: Option [C]
46. Transmission of shares takes place in the following case
[A] sale of shares.
[B] theft of shares
[C] operation of any law.
[D] all of these
Answer: Option [C]
47. To enable a company to pay dividends, a special authority is ___________.
[A] not needed either in the memorandum or in the articles
[B] needed either in the memorandum or in the articles
[C] needed only in the memorandum
[D] needed only in the articles
Answer: Option [A]

48. According to the companies act, which one of the following companies can commence
allotment of shares even before the minimum subscription is subscribed or paid?
[A] Charted company
[B] Private company
[C] Government company
[D] Public limited company
Answer: Option [B]
49. Share premium received by issuing shares can be used for ___________.
[A] payment of dividend
[B] issue of bonus share
[C] remuneration to management
[D] any business purpose
Answer: Option [B]
50. Under the companies act, which of the following powers can be exercised by the board of
directors?
[A] Power to sell any of the companies undertaking
[B] Power to make call.
[C] Power to borrow money in excess of the paid up capital.
[D] Power to reappoint on auditor
Answer: Option [B]
51. The liability of shareholders of a public company is limited to the _________.
[A] paid up value of shares
[B] nominal value of shares
[C] extent of their private assets
[D] amounts called up.
Answer: Option [D]

52. Under the Indian Companies Act, 1956, a person can be a Director in ___________.
[A] 7 companies.
[B] 10 companies
[C] 20 companies
[D] 25 companies.
Answer: Option [C]
53. Investment in which of the following is most risky?
[A] equity shares
[B] preference shares
[C] debenture
[D] Land
Answer: Option [A]
54. Which of the following is not an ownership security?
[A] equity shares.
[B] debentures.
[C] preference shares.
[D] None of the above
Answer: Option [B]
55. In which of the following, interest and dividend is payable even if the company does not earn
profit?
[A] equity capital
[B] preference capital.
[C] debentures
[D] bonds
Answer: Option [C]
56. Debentures cannot be _____________
[A] irredeemable debentures.
[B] participating debentures
[C] registered debentures
[D] bearer debenture
Answer: Option [B]
57. The existence of a joint stock company is interrupted by ______________.
[A] the death of its members
[B] the death of its directors.
[C] the death or insolvency of its manigins; director
[D] none of these
Answer: Option [C]
58. When an existing company offers its shares for sale to the existing shareholders, it is known
as_____________.
[A] private placing
[B] bonus issue
[C] rights issue
[D] offer for sale.
Answer: Option [C]
59. A ___________ is a combination of two companies to form a new company.
[A] merger
[B] public
[C] private
[D] private
Answer: Option [A]
60. Promoter is a person who__________.
[A] takes part in the incorporation of a company.
[B] is a director.
[C] is a relative of the managing director.
[D] works to siva publicity to the co.
Answer: Option [A]
61. A PARTNERSHIP OR COMPANY CONSISTING OF MORE THAN TWENTY

PERSONS SHOULD BE:
I. REGISTERED UNDER COMPANIES ORDINANCE

II. NOT REGISTERED
III. INCORPORATED UNDER COMPANIES ORDINANCE 1984
IV. BOTH i) & iii)
62. THE PERSON WHO IS THE MEMBER OF SUCH PARTNERSHIP,WHICH HAS MORE
THAN 20 MEMBERS SHOULD BE PUNISHED WITH FINE WHICH MAY EXTEND TO:
I. 10 THOUSAND
II. 15 THOUSAND
III. 5 THOUSAND
IV. 1 THOUSAND
63. ANY (THREE) OR MORE PERSONS ASSOCIATED FOR ANY LAW PURPOSE
SUBSCRIBING THEIR NAMES TO MEMORANDUM OF ASSOCIATION & COMPLYING
WITH COMPANIES ORDINANCE WILL FORM:
I. PUBLIC COMPANY
II. HOLDING COMPANY
III. PRIVATE COMPANY
IV. ORDINARY COMPANY
64. ANY MINIMUM REQUIRMENT OF ASSOCIATION FOR A PRIVATE COMPANY IS:
I. 5
II. 7
III. 1
IV. 2
65. IN MEMORANDUM THE NAME OF COMPANY AS PRIVATE WILL BE WRITTEN
AS:
I. PRIVATE LIMITED
II. LIMITED
III. PVT
IV. (PRIVATE) LIMITED
66. IN MEMORANDUN; NO SUBSCRIBER OF THE MEMORANDUM SHALL TAKE
LESS THAN:
I. 20 SHARES
II. 5 SHARES
III. 2 SHARES
IV. 1 SAHRES
67. THE TRADING CORPORATION IN MEMORANDUM SHALL STATE THEIR:
I. LIABILITY
II. SHARE CAPITAL
III. OBJECTS
IV. NONE
68. EACH SUBSCRIBER OF THE MEMORANDUM SHALL WRITE OPPOSITE TO HIS
NAME:
I. THE LIMIT OF LIABILITY
II. THE NUMBER OF SHARES
III. BOTH i) & ii)
IV. NONE
69. IN CASE OF MEMORANDUN OF COMPANY LIMITED BY GUARANTEE;EACH
MEMBER UNDERTAKES TO COMTRIBUTES TO THE ASSETS OF THE COMPANIES
OR AFTER:
I. 3 YEAR AFTER PAYMENT OF DEBTS
II. 2 YEAR AFTER PAYMENT OF DEBTS
III. 1 YEAR AFTER PAYMENT OF DEBTS
IV. 5 YEAR AFTER PAYMENT OF DEBTS
70. ARTICLES OF ASSOCIATION MAY ADOPT:
I. ALL REGULATIONS CONTAINED IN TABLE A IN 1ST SCHEDULE
II. ANY OF THE REGULATIONS OF TABLE A
III. BOTH i) & ii)
IV. NONE
71. IN WHICH CASE,ARTICLES SHALL THE AMOUNT OF SHARE CAPITAL;IF THE
COMPANY HAS A SHARE CAPITAL:
I. UNLIMITED COMPANY
II. COMPANY LIMITED BY GAURANTEE
III. NONE
IV. BOTH i) & ii)
72. IF ARTICLEA OF THE COMPANY AFFECTS THE SUBSTANTIVE RIGTHS OR
LIABILITIES OF MEMBERS OR OF A CLASS MEMBERS,IT SHALL BE CARRIED OUT
ONLY IF THE MAJORITY OF:
I. 5/10
II. 1/2
III. 3/4
IV. 3/5
73. THE MEMORANDUM AND ARTICLES SHALL WHEN REGISTERED,BIND THE
COMPANT AND MEMBERS THEREOF TO THE SAME EXTENT IF THEY
RESPECTIVELY HAVE BEEN:
I. READ
II. NOTICED
III. OBSERVED
IV. SINGED
74. ALL MONEY PAYABLE BY ANY MEMBER TO THE COMPANY UNDER THE
MEMORANDUM OR ARTICLES SHALL BE A:
I. DEBT
II. INVESTMENT
III. STOCK
IV. NONE
75. ON THE REGISTERATION OF THE MEMORANDUM OF A, THE REGISTERAR
SHALL CERTIFY BY HAND THAT THE COMPANY:
I. REGISTERED
II. ESTABLISHED
III. INCORPORATED
IV. ALL OF THE ABOVE
76. CERTIFICATE OF INCORPORATION IS LIKE A :
I. EVIDENCE
II. BIRTH CERTIFICATE
III. BOTH i) & ii)
IV. NONE OF THE ABOVE
77. PROOF OF THE EXISTENCE OF THE COMPANY IS:
I. ARTICLES OF THE ASSOCIATION
II. MEMORANDUM OF ASSOCIATION
III. CERTIFICATE OF INCORPORATION
IV. STAMP
78. EVERY COMPANY SHALL SEND TO EVERY MEMBER,AT HIS REQUEST,COPIES
OF MEMORANDUM AND ARTICLES WITHIN:
I. 10 DAYS
II. 12DAYS
III. 14 DAYS
IV. 21 DAYS
79. IF THE COMPANY MAKES DEFAULT IN SENDIND THE COPIES OF THE
MEMORANDUM AND ARTICLES SHALL BE LIABLE TO A FINE:
I. 500
II. 200
III. 300
IV. 100
80. A COMPANY WRITES THE SAME AS ANOTHER IS EXISTING SHALL:
I. CONTINUE TO WORK
II. SHALL NOT BE REGISTERED
III. BE ALLOWED
IV. NONE OF THE ABOVE
81. IF A COMPANY HAS ANY CONNECTION WITH FOREIGN GOVERNMENT OR
INTERNATIONAL ORGANIZATION IS :
I. VALID
II. BODY CORPORATE
III. SUBSIDARY
IV. CAN’T BE REGISTERED
82. ASSOCIATION NOT FOR PROFIT ARE ESTABLISED AND INCORPORATED CAN
BE REGISTERED WITHOUT THE ADDITIONS OF THE WORDS:
I. “LIMITED”
II. “PRIVATE LIMITED”
III. “GAURANTEE LIMITED”
83. COMPANIES UNDER SECTION 42 ARE GENERALLY CALLED”
I. PUBLIC COMPANY
II. PRIVATE COMPANY
III. NGOS
IV. HOLDING COMPANY
84. COMPANIES LIKE NGOS CAN’T PAY TO ITS MEMBERS:
I. SALARIES
II. REMUNERATION
III. BOTH i) & ii)
IV. DIVIDEND
85. ASSOCIATIONS NOT FOR PROFIT INCORPORATED ENJOY ALL THE PREVILEGES
OF:
I. LIMITED COMPANY
II. UNLIMITED COMPANY
III. PUBLIC COMPANY
IV. NONE
86. A LICENCE OF NOT FOR PROFIT OR NGOs MAY BE REVOKED BY THE
COMMISSION AND UPON THE REVOCATION THE REGISTRAR SHALL ENTER THE
WORDS:
I. REVOKED
II. (PRIVATE)LIMITED
III. (GAURANTEE)LIMITED
IV. BOTH i) & iii)
87. A COMPANY LIMITED GY GAURANTEE & NOT HAVING THE SHARE CAPITAL
AND BY PROVISIONS IN THE MEMORANDUM OR ARTICLES OR ANY RESOLUTION
PURPORTING TO DIVIDE THE UNDERTAKING OF THE COMPANY INTO SHARES OR
INTERESTS SHALL BE TREATED AS PROVISION FOR:
I. ISSUED CAPITAL
II. ALLOTED CAPITAL
III. AUTHORISED CAPITAL
IV. SHARE CAPITAL
88. AS IN THE CASE SECTION 6 A PERSON HAVING THE RIGHT TO PARTICIPATE IN
THE PROFITS OF THE COMPANY OTHERWISE AS THE MEMBER SHALL BE:
I. DIRECTOR
II. EXECUTIVE
III. AUDITOR
IV. VOID
89. A PROSPECTUS ISSUED SHOULD BE:
I. ON THE BEHALF OF COMMISSION
II. ON THE BEHALF OF SUBSIDIARY
III. ON THE BEHALF OF COMPANY
IV. NONE
90. THE ON WHICH PROSPECTUS IS ISSUED AND THAT DATE,UNLESS THE
CONTRARY IS PROVED BE TAKEN AS:
I. ISSUED DATE
II. STARTING DATE
III. DATE OF COMMINSMENT
IV. DATE OF PUBLICATION
91. EVERY PROSPECTUS ISSUED BY OR ON THE BEHALF OF COMPANY OR BY OR
ON THE BEHALF OF THE PERSON WHO HAS ENGAGED OR INTERSETED IN THE:
I. SHARES OF THE COMPANY
II. ASSETS OF THE COMPANY
III. FORMATION OF THE COMPANY
92. PROSPECTUS PUBLISHED SHOULD BE:
I. DAILY NEWSPAPER ONLY
II. DAILY URDU NEWSPAPER ONLY
III. ONE URDU AND ONE ENGLISH NEWSPAPER
IV. TWO ENGLISH AND ONE URDU NEWSPAPER
93. PROSPECTUS ISSUED SHALL BE MADE AVAILABLE AT:
I. REGISTERED OFFICE OF THE COMPANY
II. STOCK EXCHANGE AT WHICH IT IS LISTED
III. WITH BANKERS TO ISSUE THE PROSPECTUS
94. THE LEGAL HEIR AND SUCCESSOR SHALL FURNISH THE FOLLOWING
DOCUMENTS TO THE COMPANY FOR TRANSFER OF SHARES:
I. SHARES CERTIFICATE IN ORIGINAL
II. SHARE TRANFER DEED
III. DEATH CERTIFICATE
95. THE COMPANY ON ITS SATISFACTION, SHALL TRANSFER THE SHARES IN
RESPECT OF:
I. PROECESSOR
II. SUCCESSOR
III. BOTH
IV. NONE
96. THE PERSON NOMIATED FOR THE TRANFER OF SHARES IS:
I. SON
II. STEP-SON
III. ADOPTED-CHILD
IV. ALL
97. A PERSON IN HIS LIFE CAN:
I. TRANSFER OR SHARE THE RIGHTA OF ITS MEMBERSHIP
II. CAN’T SHARE THE RIGHTS OF MEMBERSHIP
III. AS THE CASE MAY BE
IV. NONE
98. THE NOMINATION MADE AND DEPOSITED BEFORE THE DEATH OF THE
MEMBER IN LIKE MENNER OR EXPRESSLY CAN BE:
I. CANCELLED
II. CHANGED
III. BOTH
IV. NONE
99. THE TRANSFER OF SHARES OR DEBENTURES OF A DECREASED MEMBER BY
HIS NOMINEE OR LEGAL REPRESENTATIVE SHALL ALTHOUGH, HE IS NOT THE
HIMSELF THE MEMBER BE AS:
I. VOID
II. VOIDABLE
III. VALID
IV. LEGAL OFFENCE
100. A TRANFER OF SHARES OR DEBENTURES OF A DECEASED PERSON BY HIS
NOMINEE OR LEGAL REPRESENTATIVE SHALL, ALTHOUGH THE NOMINEE OR
LEGAL REPRESENTATIVE IS NOT HIMSELF A MEMBER ,BE AS VALID IF HE HAD
BEEN A MEMBER:
I. AT THE TIME OF SHARES OR DEBENTURES SUBCRIPTION

II. AT THE TIME OF FORMATION OF COMPANY
III. AT THE TIME OF EXECUTION OF THE INSTRUMENT TRANSFER
IV. NONE
101. MAIN CONDITIONS FOR RIGHT ISSUE OF SHARES IS:
I. THEY ARE ISSUED TO DIRECTORS

II. THEY ARE ISSUED TO PROMOTERS
III. THEY ARE ISSUED TO EXISTING SHARE HOLDER TO THEIR EXISTING
SHARE HOLDING
102. THE ISSUE OF RIGHT SHARES SHALL BE MADE WITHIN:
I. UNLIMITED TIME
II. LIMITING TIME
III. 1 DAY
IV. 1 WEEK
103. A PUBLIC COMPANY CAN RAISED FURTHER CAPITAL WITHOUT THE ISSUE OF
RIGHT SHARES ON THE BASIS OF SPECIAL RESOLUTION IF THE COMPANY HAS
GOT PERMISSION FROM:
I. PROVISIONAL GOVERNMENT
II. SECP
III. DIRECTORS
IV. FEDERAL GOVERNMENT
104. A PUBLIC COMPANY MAY RESERVE A CERTAIN PERCENTAGE OF
SHARES/FURTHER ISSUE OF ITS EMPOLYEES UNDER:
I. COMPANY SCHEME
II. LABOUR SCHEME
III. EMPLOYEE STOCK OPTION SCHEME
IV. NONE
105.. EMPLOYEE STOCK OPTION SCHEME SHOULD BE APPROVED BY:
I. PROVISIONAL GOVERNMENT
II. COMMISSION
III. SECP
IV. BOTH ii) & iii)
106. THE OFFER OF NEW SHARES SHALL BE STRICTLY IN PROPORTION TO:
I. NUMBER OF EXISTING SHARE HOLDERS

II. NUMBER OF EXISTING DEBENTURE HOLDERS
III. NUMBER OF EXISTING SHARES HELD
IV. NUMBER OF EXISTING DEBENTURES HELD
107. THE OFFER OF NEW SHARES SHALL BE ACCOMPANIED BY A CIRCULAR DULY
SIGNED BY:
I. DIRECTORS OF THE COMPANY

II. OFFICERS OF THE COMPANY
III. REGISTRAR
IV. BOTH ii) & i)
108. THE CIRCULAR PUBLISHED BY THE COMPANY FOR THE ISSUE OF RIGHT
SHARES;IN THE FORM PRESCRIBED BY THE COMMISSION CONTAIN
INFORMATION ON:
I. ABOUT THE AFFAIRS OF THE COMPANY

II. LATEST STAEMENT OF THE ACCOUNTS
III. SETTING FORTH THE NECESSITY FOR THE ISSUE OF FURTHER SHARE
109. A COPY OR CIRCULAR FOR ISSUE OF FURTHER SHARES DULY SIGNED BY
DIRSCTORS OR ON AN OFFICER AUTHORISED SHALL BE FILED WITH _________
BEFORE CIECULAR IS SENT TO SHAREHOLDER:
I. COMMISSION
II. FEDERAL GAVERNMENT
III. PROVIONAL GOVERNMENT
IV. REGISTRAR
110 THE CIRCULAR SHALL SPECIFY A DATE BY WHICH THE OFFICER, IF NOT
ACCEPTED:
I. WILL BE DEEMED TO BE DECLINED

II. WILL NOT BE DEEMED TO BE DECLINED
III. THEY SHARES CAN BE ISSUED IN SUCH A MANNER AS THEY DEEM FIT
IV. BOTH i) & iii)
111. IF A COMPANY INTENDS TO HAVE DIFFERENT KINDS OF SHARE CAPITAL
AND CLASSES OF SHARES THEREIN; IT SHALL SO SPECIFICALLY SO PROVIDE IN
ITS:
I. MEMORANDUM
II. ARTICLES
III. BOTH
IV. NONE
112. NO COMPANY SHALL ISSUE:
I. FULLY PAID SHARES

II. QUARTERLY PAID SHARES
III. PARTLY PAID SHARES
IV. ALL
113. IF A COMPANY HAS PARTLY PAID SHARES ON THE COMMENCEMENT OF THIS
ORDINANCE, IT:
I. SHALL NOT FURTHER SHARE CAPITAL

II. ALL THE SHARES PREVIOUSLY ISSUED HAVE BECOME FULLY PAID UP
III. SHALL PAY DIVIDEND ONLY IN PROPORTION TO THE AMOUNT PAID ON
EACH SHARES
114. A COMPANY LIMITED BY SHARES;IF SO AYTHORISED BY ITS ARTICLES MAY
ALTER THE CONDITIONS OF ITS:
I. ARTICLES
II. RESOLUTIONS
III. AGM
IV. MEMORANDUM
115. A COMPANY LIMITED BY SHARES; IF SO AUTHORISED BY ITS ARTICLES, MAY
AFTER THE CONDITIONS OF ITS MEMORANDUN SO AS TO:
I. INCREASE ITS SHARE CAPITAL BY SUCH AMOUNT AS IT THINKS

EXPEDIENT
II. CONSOLIDATE AND DIVIDE THE WHOLE OR ANY PART OF ITS SHARE
CAPITAL INTO LARGER AMOUNT
III. SUB-DIVIDE ITS SHARE, OR ANY OF THEM INTO SMALLER AMOUNT
116. IN THE EVENT OF CONSOLIDATION OR SUB DIVISION OF SHARES ,RIGHTS
ATTACHING TO NEW SHARES SHALL BE STRICTLY PROPORTIONAL TO RIGHTS
ATTACHING TO:
I. EXITING SHARES
II. PREFERRED SHARES
III. PREVIOUS SHARES
IV. BOTH i) & iii)
117. THE NEW SHARES ISSUED BY A COMPANY SHALL RANK __________ WITH
EXISTING SHARES OF THE CLAS TO WHICH THE NEW SHARES BELONG TO ALL
ITS MATTERS:
I. MODUS OPERENDIE
II. BONAFIDE
III. PARI PASSU
IV. NONE
118. THE COMPANY SHALL FILE WITH THE REGISTRAR NOTICE OF EXERCISE OF
ANY POWER REFER TO POWER OF A COMPANY LIMITED BY SHARES TO ALTER
ITS SHARE CAPITAL WITHIN __________ DAYS FROM THE EXERCISE THEREOF:
I. 21 DAYS
II. 25 DAYS
III. 15 DAYS
IV. 35 DAYS
119. A COMPANY SHALL AS FROM THE DAYS ON WHICH IT BEGINS TO CARRY ON
BUSSINESS OR AS FROM _______ DAY AFTER THE DATE OF ITS INCORPORATION,
WHICHEVER IS EARLIER, HAVE A REGISTERED OFFICE:
I. 25 DAYS
II. 15 DAYS
III. 28 DAYS
IV. 40 DAYS
120.IF THE COMPANY FAILS TO REQUIREMENTS GIVEN ABOVE IT SHALL AND
EVERY OFFICER OF THE COMPANY WHO KNOWINGLY OR WILLFULLY
AYTHORISES OR PERMITS THE DEFAULT SHALL LAIBLE TO A FINE NOT
EXCEEDING ________ FOR EVERY DAY DURING WHICH SUCH COMPLIANCE
CONTINUES:
I. 15000
II. 10000
III. 200
IV. 500
121. EVERY ___________ COMPANY SHALL POINT OR AFFIX AND KEEP PAINTED
OR AFFIXED, ITS NAME ON THE OUTSIDE OF EVERY OFFICE OR PLACE IN WHICH
ITS BUSINESS CARRIED ON, IN A CONSPICUOUS POSITION:
I. PUBLIC COMPANY
II. PRIVATE COMPANY
III. LIMITED COMPANY
IV. UNLIMITED COMPANY
122.THE NAME OF THE LIMITED COMPANY PAINTED OR AFFIXED SHOULD BE
LEGIBLE AND IN:
I. ENGLISH
II. URDU
III. BOTH
IV. NONE
123. A LIMITED COMPANY SHALL HAVE ITS NAME ENGRAVEN IN LEGIBLE
ENGLISH OR URDU CHARACTERS ON ITS:
I. SEAL
II. LETTERS
III. HUNDIS
124. A COMPANY OR OFFICER OF THE COMPANY WHO KNOWINGLY A PARTY
MAKES DEFAULT IN COMLYING WITH THW REQUIREMENTS OF PUBLICATION OF
AUTHORISED AS WELL AS PAID UP CAPITAL SHALL BE LIABLE TO A FINE WHICH
MAY EXTEND TO
I. 10000
II. 5000
III. 7000
IV. 8000
125. A PUBLIC COMPANY SHALL NOT COMMENCE ANY BUSINESS UNLESS:
I. IT HAS RECEIVED MINIMUM SUBCRIPTION OF SHARES
II. DIRECTORS OF THE COMPANY HAS PAID FULL AMOUNT OF SHARES
TAKEN
III. IT HAS REPAID ALL MONEY TO APPLICANTS IN CSAE OF FAILURE
126. IF A COMPANY SHALL NOT ISSUE PROSPECTUS INVITING THE PUBLIC TO
SUBCRIBE FOR ITS SHARES, THERE HAS BEEN FILED WITH THE REGISTRAR A
STATEMENT:
I. IN SUBSTITUTE OF PROSPECTUS
II. FOR NOT DISCLOSING PROSPECTUS
III. IN LIEU OF PROSPECTUS
IV. BOTH i) & iii)
127. IF THE COMPANY IS DOING OR BORROWING ULTRA VIRUS; EVERY PERSON
OR OFFICER WHO IS RESPONSIBLE FOR CONTRAVENTION, SHALL WITHOUT
PREJUDICE TO OTHER LIABILITIES BE LIABLE TO A FINE NOT EXCEEDING
________ FOR EVERY DAY DUARING WHICH THE CONTRAVENTION CONTINUES:
I. 5000
II. 2000
III. 1000
IV. 1500
128. THE SECTION 146 OF RESTRICTIONS ON COMMENCEMENT OF BUSINESS SHLL
NOT APPLY TO:
I. PRIVATE COMPANY
II. COMPANY LIMITED BY GAURANTEE
III. COMPANY NOT HAVING SHARE CAPITAL
129. EVERY COMPANY LIMITED BY SHARES AND EVERY COMPANY LIMITED BY
GAYRANTEE AND HAVING A SHARE CAPITAL, WITHIN A PERIOD OF NOT LESS
________ FRON THE DATE AT WHICH COMPANY IS ENTITLES TO COMMENCE
HOLD A GENERAL MEETING OF THE MEMBERS OF THE COMPANY:
I. 3 MONTHS
II. 4 MONTHS
III. 5 MONTHS
IV. 6 MONTHS
130. THE CASE ABOVE THE MAXIMUM PERIOD FOR HOLDING A GENERAL
MEETING OF MEMBERS OF THE COMPANY:
I. 6 MONTHS
II. 7 MONTHS
III. 9 MONTHS
IV. 8 MONTHS
131. THE GENERAL MEETING SHALL BE CALLED:
I. RESOLUTION
II. STATUTORY MEETING
III. BOTH
IV. NONE
132. THE DIRECTORS SHALL, AT LEAST __________ BEFORE THE DATE ON WHICH
MEETING IS HELD, FORWARD A REPORT, IN THIS ORDINANCE REFFERED AS THE
STATUTORY REPORT TO EVER MEMBER:
I. 40 DAYS
II. 25 DAYS
III. 20 DAYS
IV. 21 DAYS
133. THE STATUTORY REPORT SHALL BE CERTIFIED BY NOT LESS THAN:
I. 2 DIRECTORS
II. 5 DIRECTORS
III. 3 DIRECTORS
IV. 7 DIRECTORS
134. THE STATUTORY REPORT CERTIFIED BY THREE DIRECTORS, ONE OF WHOM
SHALL BE:
I. OWNER OF THE COMPANY

II. SHAREHOLDER OF THE COMPANY
III. CHIEF EXECUTIVE OF THE COMPANY
IV. NONE
135. THE STATUTORY REPORT SHALL STATE:
I. TOTAL AMOUNT OF SHARES

II. DISTINGUISHING SHARES ALLOTED OTHERWISE THAN IN CASH
III. TOTAL AMOUNT OF CASH RECEIVED BY THE COMPANY IN RESPECT OFF
ALL SHARE ALLOTED
136. THE STATUTORY REPORT SHALL ALSO CONTAIN A BREIF ACCOUNT OF
STATE OF COMPANIES AFFAIRS SINCE ITS:
I. INCORPORATION
II. COMMENCEMENT
III. BEGINNING DAY
IV. NONE
137. THE DIRECTORS SHALL CAUSE AT LEAST ___________ COPIES OF STATUTORY
REPORT, CERTIFIED AS AFORESAID TO BE DELIVERED TO THE REGISTRAR FOR
REGISTRATION FORTHWITH AGTER SENDING THE REPORT TO THE MEMBERS OF
THE COMPANY:
I. 5
II. 6
III. 7
IV. 15
138. THE RESOLUTION OF WHICH NOTICE HAS NOT BEEN GIVEN IN ACCORDANCE
WITH THE ARTICLES MAY BE:
I. PASSED
II. MAY NOT BE PASSED
III. AS THE CASE MAY OR MAY NOT BE PASSED
IV. ONLY I)
139.. A CONDITION OR REQUIREMENT BINDING AN APPLICANT FOR SHARE IN OR

DEBENTURE OF A COMPANY TO WAIVE COMPLIANCE WITH ANY OF THE
REQUIREMENTS AND NOT MENTIONED IN THE PROSPECTUS SHALL BE:
I. LEGAL
II. ALLOWED
III. VOID
IV. VALID
140.. THE FORM OF APPLICATION FOR SHARES IN OR DEBENTURES OF A
COMPANY,UNLESS THE FORM IS ACCOMPANIED BY PROSPECTUS:
I. IS APPLICALBLE
II. NOT APPLICABLE
III. CAN BE ACCEPTED
IV. NONE
142..THE SHARES OR DEBENTURES WHICH WERE NOT OFFERED TO PUBLIC, THE
APPLICATION FORM WITHOUT PROSPECTUS;THE SHARES OR DEBENTURES CAN
BE:
I. ISSUED
II. CAN’T BE ISSUED
III. VOID
IV. NONE
143.. NO ONE SHALL ISSUE ANY FORM OF APPLICATION FOR SHARES IN OR
DEBENTURES OF A COMPANY UNLESS THA FORM IS ACCOMPANIED BY
PROSPECTUS;IF ANY PERSON ACTS IN CONTRAVENTION OF THIS SECTION,HE
SHALL BE LIABLE TO A FINE NOT EXCEEDING:
I. 5000
II. 3000
III. 2000
IV. 1000
144.. NO ALLOTMENT SHALL BE MADE OF ANY SHARE CAPITAL OF A COMPANY
OFFERED TO PUBLIC FOR SUBSCRIPTION UNLESS THE AMOUNT STATE IN
PROSPECTUS AS THE MINIMUM AMOUNT IN OPINION OF DIRECTORS MUST BE:
I. RAISED BY ISSUE OF SHARE CAPITAL
II. AND FULL AMOUNT THEREOF HAS BEEN PAID
III. AND THE AMOUNT RECEIVED IN CASH BY CO
145.. ALL MONEYS RECEIVED FROM APPLICANTS FOR SHARES SHALL BE
DEPOSITED AND KEPT IN A SEPARATE:
I. LOCKER
II. CUSTODY
III. BANK ACCOUNT
IV. NONE
146.. ALL MONEYS RECEIVED FROM APPLICANTS FOR SHARES SHALL BE
DEPOSITED AND KEPT IN A SEPARATE BANK ACCOUNT UNTILL:
I. THE BUSINESS STARTS
II. LAW ALLOWS
III. THE CERTIFICATE TO COMMENCE BUSINESS IS OBTAINED
IV. ALL
147.. THE AMOUNT PAYABLE ON APPLICATION ON EACH SHARE SHALL BE THE
FULL:
I. ORDINARY AMOUNT OF THE SHARES
II. SPECIAL AMOUNT OF THE SHARES
III. NOMINAL AMOUNT OF THE SHARES
IV. BOTH ii) & iii)
148.. MINIMUM SUBCRIPTION IS THE AMOUNT OF CAPITAL MENTIONED:
I. ARTICLES OF ASSOCIATION
II. PROSPECTUS
III. BOTH i) & ii)
IV. NONE
149.. THE MONEY RECEIVED IN EXCESS OF MINIMUM SUBCRIPTION IS REQUIRED
TO BE:
I. DEPOSITED
II. REFUNDED
III. UTILIZED
IV. NONE
150..THE MEMORANDUM AND ARTICLES SHALL WHEN REGISTERED,BIND THE
COMPANT AND MEMBERS THEREOF TO THE SAME EXTENT IF THEY
RESPECTIVELY HAVE BEEN:
V. READ
VI. NOTICED
VII. OBSERVED
VIII. SINGE

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1.

The following are ineligible for appointment as auditor EXCEPT:

a) Unauthorized b) Unpaid c)Un-issued d) Unsubscribed

a) Memorandum of Association b)Article of association c) Prospectus d) Financial statements

a) Share allotment b)Share Transfer c) Share Transmission d) b& c both

4-Theinitial shareholders are called ___.

a) Transferee b) Subscribers c) Board of directors d) Investors

a)0.5% b)1% c)1.5% d)2%

a)3 days b) 5 days c)7 days d)11 days

a) 10 days b) 15 days c)30 days d)45 days

a) 10 days b) 15 days c) 30 days d) 45 days

a) Name b) Amount c) Number d)None

a) 10 days b) 20 days c) 30 days d)40 days

a) Preferred b) common c) Deferred d) a & b both

12-Capital with which company is registered is known as ___ capital.

a)Subscribed b)Issued c)Registered d)Paid up

a)Unpaid up b) Unsubscribed c) Unissued d)Un called up

15-___ is the document in which it is stated that company is going to do what.

a) Memorandum b) Article c) Prospectus d) All

1. What is known as a charter of a Company?

[A] Memorandum of Association

[B] Bye laws

[C] Articles of Association

Answer: Option [A]

2. Minimum paid up capital for a public company

Answer: Option [A]

3. The name of a company can be changed by__________.

[A] an ordinary resolution

[B] a special resolution

[C] the approval of the union government

Answer: Option [D]

4. The __________defines a companys relations with the outside world.

[B] memorandum of association

[C] articles of association .

[D] statement in lieu of prospectus .

Answer: Option [B]

5. The most important document of a company is its__________.

[B] annual report.

[C] memorandum of association

[D] articles of association

Answer: Option [C]

[A] that may not be in the companys interest .

[B] that is contrary to the provisions of the companies act.

[C] that increases a members liability without his written consent .

[D] that is consistent with the memorandum of association .

Answer: Option [D]

[A] statutory declaration

[B] memorandum of association .

[C] articles of association .

[D] directors undertakings to take up and pay for qualification shares

Answer: Option [C]

[A] an ordinary resolution

[B] a special resolution

[C] a resolution of the board of directors

[D] obtaining permission from the company law board

Answer: Option [B]

9. The ___________ on equity shares is not cumulative.

Answer: Option [A]

[A] general manager .

[C] board of directors.

[D] advisory panel.

Answer: Option [C]

Answer: Option [C]